Skanska Annual Report 2003

Note 6 continuedNet sales by type of revenuesGroup 2003 2002Construction contracts 113,578 129,487Services 2,641 2,234Merchandise sales 2,187 2,139Rental revenues 1,517 1,572Divestments of properties 12,956 6,601Total 132,879 142,033Regarding other types of revenues, dividends and rental revenues are reported aspart of net financial items. See Note 13, ”Financial items.” Skanska had no royaltyrevenues during 2003, nor during 2002.Other mattersGroupSales to associated companies and joint ventures amounted to SEK 2,530 M (816).For other related party transactions, see Note 37, ”Related party disclosures.”Parent CompanyThe Parent Company’s revenues consist of income on intra-Group services.The amount included SEK 127 M (219) in sales to subsidiaries. For other relatedparty transactions, see Note 37, ”Related party disclosures.”Note 7Construction contracts and similar assignmentsConstruction contracts are recognized as revenues at the pace of project completion.See ”Accounting and valuation principles,” Note 1.Information from the income statementGroupRevenues recognized during the year amounted to SEK 113,578 M (129,487).Information from the balance sheetGroupRecognized but non-invoiced revenue 2003 2002Recognized revenue 98,829 104,309Invoiced sales –94,015 –99,413Total, asset 4,814 4,896Invoiced but unrecognized revenue 2003 2002Invoiced sales 126,766 142,250Recognized revenue –117,455 –132,075Total, liability 9,311 10,175Recognized revenues in ongoing projects including reported gains less reported lossprovisions amounted to SEK 216,284 M (236 385).Advance payments received totalled SEK 1,490 M (889).Amounts held back by customers which have been invoiced as part of anestablished plan and which the customer is retaining in compliance with contractualterms until all the terms specified in the contract have been met, amounted to SEK2,848 M (3,446).Note 8Operating incomeThe following table presents operating income by business stream.Operating income beforeGoodwillgoodwill amortizationamortization/and writedowns writedowns Operating incomeGroup 2003 2002 2003 2002 2003 2002Construction and Services 2,263 2,406 –578 –1,788 1,685 618Commercial Project Development 3,061 1,049 0 0 3,061 1,049Residential Project Development 305 377 –7 0 298 377BOT 27 –41 0 0 27 –41OtherCentral –484 –688 0 0 –484 –688Closed down operations 10 –164 0 –98 10 –262Eliminations –65 –72 0 0 –65 –72Total 5,117 2,867 –585 –1,886 4,532 981In the above table, the item ”Other” has been divided into ”Central,” ”Closed down operations,” and ”Eliminations.”The Parent Company and other corporate units are reported as ”Central.”The main item reported under ”Closed down operations” is Skanska Telecom. Elimination of internal profits from intra-Group sales are reported as ”Eliminations.”Skanska Annual Report 2003 – Notes, including accounting and valuation principles 59